Life insurance: a product that greens the economy

What is the relationship between life insurance and sustainable finance? Well, one allows the other to exist and endure! Life insurance is a very popular financial investment for the French and allows savings to be transferred to the beneficiary depending on an event related to the insured: death or survival. It is partially invested in assets to be evaluated. You have the option of choosing a mono-support life insurance contract, where all your savings will be placed in one support: a euro fund managed by your insurer, banker or management company. There is no risk, you collect annual interest at the rate set by the government. Otherwise, you choose a multilateral support agreement and invest your capital in a euro fund and stocks, bonds, Sicav, investment funds, real estate funds, etc.

What is a fund?

A fund is a kind of common pool fed by several investors who pool their capital. These funds are managed by fund managers (financial professionals) who invest, rather than the organization collecting your money, and must deliver results. Depending on the funds in which this cash is placed, we are talking about sustainable finance. And greening the economy is increasingly fashionable in France.
It remains to be seen which funds our savings are directed to. Olivier Rull founded the Caravel agency in Paris in 2020. A startup with an impact in 2021 and labeled Best Retirement Product 2022, the company’s mission is to guarantee retirement for all in a livable world. Created an agency “responsible supplementary pension”. Olivier Rull, a great connoisseur of this nebula of funds swirling around our cash, wants to be sure of the legal obligations associated with this investment.

Funding your beliefs

Insurers, bankers… are obliged to ask policyholders about their investment preferences. “First of all, to exclude all funds that invest in companies that are against the conviction of the insured person, explains Olivier Rull. If the person is a vegetarian, he will ask to avoid funds that finance the pork industry. If there are none. Those that are sensitive to the environment, such as residual they will reject all funds that finance fuels.”
In 2021, the outstanding amount of life insurance dedicated to solidarity funding increased by 3.5 billion euros. Although this may not seem like much from the 1,700 billion euros represented by this investment, growth and demand are increasing.

public need

For Olivier Rull, “These numbers show society’s need for greening Europe. Yes, responsible savings are expanding.” Therefore, we are talking about sustainable finance, which includes companies responsible for protecting the environment, biodiversity, working towards more rational urbanization, environmental protection, children, medical research, etc. allows to finance associations. .. Above all, these funds will exclude all controversial sectors.

Labels to find your way

According to an estimate published in Le Monde in November 2022, about 790 of the 40,000-50,000 funds listed in France in 2021 will be called green funds.
How to find it? “We are focusing on eight sectors of action, which fall under the scope of energy and environmental transition, combating climate change and solidarity. Olivier Rull explains: green energy, clean building, responsible industry, new technologies, clean transport, waste management, pollution control, responsible agriculture and forestry.”
Caravel’s selection criteria are determined based on the Greenfin label, created by the Ministry of Ecology and Inclusive Transition, which guarantees the green quality of investment funds. “So we sifted through 1,130 investment funds to select 45 that fit our criteria. Fifteen are what we can call ‘super green.’
To name a few, they will say Sycomore Eco Solutions, Mirova Funds Europe Environmental Equity Fund, Mandarine Global Transition, Solidarité Habitat et Humanism, Solidarity Choice, Dynamic Employment Integration… Basically, there is a choice.

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